"We are not operators."
Most independent sponsors insist they're (more) operations-focused (than others). It's such a common talking point, with both LPs and Sellers, that one would look bereft w/o it.
However, some sellers are alienated by operating partners and post-closing transformation consultants. This is particularly true for sellers who are looking to roll & stay or incumbent management who is looking for trust & opportunity.
After 14 years as independent sponsors, Edwin Burke and Chris Eichmann build trust & alignment by explicitly relying on the seller/mgmt for day-to-day operations, which is a powerful vote of confidence, and then they add value via strategy & capital instead.
It's also more honest. How involved in daily operations can a PE executive with several OpsCos and a fat M&A pipeline residing on the other side of the country really be?
Differentiation isn't only what you do. It's also what you don't do.
New episodes of Minds Capital Podcast every Wednesday.
